A few years ago, during a long drive, I discussed money and governance with the auto-driver (it is safer to chat with strangers than relatives). He said, “For middle-class people like me ..”. I do not remember the rest of the sentence, but that phrase middle-class people like me has stayed with me. Up until that…

‘I’ll start once things settle down. It sounds like a plan. It even sounds responsible. But I’ve come to believe it might be one of the most expensive things a person can say to themselves. I’ve been investing in equity for about five years now. In the investing world, that’s not very long. I haven’t…

Many products and services offer users a choice: pay monthly or once a year at a considerable discount. Does it always make sense to take the deduction? Time is money, so paying a large amount now to avail of a discount (or to protect against a future price rise) can feel like a loss. On…

Each time the stock market falls, a new generation of investors learns how risky it can be, especially in the small and mid cap segments (including the Nifty Next 50). Equity investing is challenging for two reasons. 1) It requires incredible patience, discipline and conviction. See: Now Is the Best Time to Invest: Do not stop…

A few days ago,  a young man approached me after a talk and asked,  Is it unpatriotic to buy gold and international stocks now? I was not sure I was convincing in my answer, so let me put my thoughts together as an article. Caveat: I am not an economist. So please excuse the crudeness. Thankfully,…

A reader says, “I am 36 and have a 4-year-old daughter, trying to save some money for her education, marriage and my retirement.  I need your advice on how to invest 1 lakh per month wisely to achieve my goals.” You can treat each goal independently and have separate portfolios, or consider a single portfolio…

When Dilbert cartoonist Scott Adams could not find a publisher for a one-page book on “Everything you need to know about financial planning”, he was forced to write a 368-page book – Dilbert and the Way of the Weasels. (Ref: MyMoneyBlog) You don’t need a page to hold all the advice Adams gives. All you need…

You may have heard this on many personal finance forums: It is hard to reach a net worth of Rs. one crore. After that, things become easier. In my experience, this is not a universal truth. Going from Rs. 10K to 20K networth and going from Rs. 1 Crore to 2 Crore could have similar ease or hardship….

Establishing an emergency fund is the initial step in achieving financial stability. The amount of funds needed for emergencies cannot be calculated accurately as it varies based on personal outlook. It depends on the individual’s experiences with unfortunate events and their frequency, whether positive or negative. It’s important to note that experts recommend having an…

Forget about early retirement; Most people will not become financially independent at normal retirement (55-60). Unlike early retirement, this is a mandatory retirement. Otherwise, our quality of life will significantly decrease, and we will depend on our children. Also, why have we not seen a retirement crisis in India? (1) For this, we need to…

It is quite easy to appreciate the benefits of diversification. The proverb, “Don’t put all your eggs in one basket” (earliest use: Miguel de Cervantes’ 1605 novel Don Quixote) appeals to us immediately as a caution against taking on too much risk.  However, there are issues with its practical application to an investment portfolio. First,…

Here are nine steps beginners can follow to start planning for retirement. We will assume that retirement is 25 years away. The first step involves defining your target. The purpose for the funds and the timeline for when they are needed are already established, accounting for 25% of the planning. Investors often ask, “What return can…

Many investors often ask, “I have some surplus cash. Where should I park it?”; “Can I park my surplus cash in my SBI Max Gain account?”; “Is this market dip a good time to deploy my surplus cash?”. Almost always, digging deeper reveals it to be a case of bad planning. The first question to…

One evening, my eleven-year-old asked me a simple question. “Why do you keep putting money into that account?” He had seen me do it many times while hovering around my laptop. A small investment every month. Quietly. Consistently. To him, it looked like money kept disappearing somewhere. To me, it was something very different. It…

Often, readers email us saying, “I do not have enough to invest for my long-term goals. What should I do?” This is a common situation; most of us start our investment journey this way. Don’t despair. Here are some options to consider. 1. Consider clubbing all long-term goals together (greater than 10Y away) and investing…